As we approach the close of the current financial year, it's crucial for businesses to strategically plan for the upcoming new financial year period. This time of reflection and projection is vital for enhancing operational efficiency, refining financial strategies, and setting a robust foundation for the year ahead.
Here are pivotal actions to consider for the 2024–25 Financial Year:
Secure your financial data
Begin by setting closing dates within your ERP and Accounting databases. This ensures that your financial records for the past year are locked and protected, preventing accidental alterations and ensuring data integrity. It's a fundamental step in preserving the accuracy of your financial history.
Review your pricing strategy
The new financial year is an opportune time to reassess your pricing model. Evaluate market conditions, cost changes, and competitive positioning to adjust your prices or fees. This proactive measure helps maintain profitability and market competitiveness.
Wage costs analysis
Review and plan your wage costs for the 2024–25 FY. With labour being a significant expense for many businesses, thoughtful planning in this area can lead to substantial cost savings and efficiency improvements. Consider potential staffing changes or process improvements to enhance productivity.
Budgeting by business unit
Allocate time to prepare comprehensive budgets for each business unit. This detailed approach allows for a more accurate financial forecast, enabling targeted strategies for revenue growth and cost management. It will provide a clear roadmap for each segment of your business.
Streamline internal processes
Undertake a thorough review of your internal processes to identify and eliminate inefficiencies. Streamlining operations not only reduces costs but also improves employee satisfaction and customer experiences. Embrace technology, automate where possible, and refine workflows.
Setting goals for the new financial year
Articulate clear, measurable goals for the 2024–25 financial year. These goals should encompass financial targets, operational improvements, market expansion, or product development objectives.
Goal setting is a critical component of strategic planning, providing direction and motivation for your team.
Important reminder
Ensure that all budgets are meticulously set within your ERP software and accounting system. Integrating your budgeting efforts across both platforms enhances visibility, improves financial control, and streamlines reporting processes.
As we move into the new financial year, let these strategies guide your planning and execution. It's an excellent time to reinforce the foundations of your business, seek growth opportunities, and enhance operational efficiency.
Remember, the steps you take today will shape your business's success in the 2024–25 financial year and beyond.
Aaron joined the Cutcher & Neale Software division in 2005 and specialises in financial systems solutions and operational process review and implementation.
Aaron’s accounting expertise allows him to create custom-built applications for businesses struggling with financial statements and account reconciliation tailored to their needs.
